Explain the concept of financial leverage
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Financial leverage refers to the use of debt to acquire additional assets.
Financial leverage is also known as trading on equity.
Below are two examples to illustrate the use offinancial leverage, or simply leverage.
Mary uses $400,000 of her cash to purchase 40 acres of land with a total cost of $400,000.
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Financial leverage is also known as trading on equity.
Below are two examples to illustrate the use offinancial leverage, or simply leverage.
Mary uses $400,000 of her cash to purchase 40 acres of land with a total cost of $400,000.
hope u like it
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It refers to the use of debt to acquire additional assets
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